Getting your company to issue a security token is quite difficult, considering the financial responsibilities and stress you might have to undergo. Undoubtedly, this has to be the reason why most companies choose to overlook the benefits a security token offers and settle for a utility token.
The use of the blockchain technology has made raising funds achievable and security tight. These opened most organizations to the reality of using their token to sell company stocks or shares something akin to the practice in the traditional market. The only roadblock companies face, is the requirements for starting a security token and this is evident in the numbers of token that launched in the first quarter of 2018. Out of 86 token that launched, only two does security-related operations.
The regulation and requirement that causes deterrent for security token launch are:
- Security token issued are required to be backed up with fiat currency. It is ironical since ICOs are launched to raise money for a project.
- Varieties of approval and licensing are necessary which makes it an unending legal exercise
- Compulsive AML and KYC for all investors. To curtail cases of money laundry with investors
- A controlled market for issuing token, which limits trade among approved investor.
For a company to successfully pull off these requirements, it will require finance and a legal team. Most ICOs are looking toward raising money not putting down asset they don’t, to issue a security token.
MOBU’s Transformation Of The Security Market
The MOBU decentralized platform is to help companies launch their security token with MOBUs’s ICO security solution. They have gone through the hurdles of providing a complaint based system for an organization to put their security token in the trade market. They took care of the approval process such as KYC, AML, and SEC, not to forget escrow services and investors protection. Investors now have the prospect of making good returns on their investment; with practical tools for their ICOs to be functional.
How does MOBU operate?
With the aid of a master code, they generate compliant tokens which qualified companies with security token can leverage on. They ensure that only authorized investors can trade in the security token and they achieve this curating only the address of investors that have gone through the verification exercise.
Investors without asset will get banking support through MOBU to provide traditional currency so that transactions involving such will not hit rock-bottom.
Importance Of MOBU Over Traditional Security Market
- Meager Amount: in the conventional trading market, the cost of getting bonds, shares or stocks are quite enormous. Considering it involves agency such as banks, brokers, and so on. The cost of the trade is now subsided since you will be dealing directly with the company.
- Prompt transaction. Being a digital market, carrying out transactions is very fast and saves investors time and energy.
- No Fraudulent Act: Since the records and operation are done on the blockchain platform which uses the open ledger system, it removes any form of fraudulent activity. Investors can sleep with their mind at rest.
MOBU has a lot of prospects and its already making its mark towards its realization. It is evident that MOBU has outpaced the traditional market and it will completely revamp the security trading platform as it further develops.
